New Construction in Birmingham Metro
Mount Olive, AL 35117
3 Beds - 2 Baths - 2 Car Garage
Square Feet1,272
Initial Market Value$266,900
Purchase Price$266,900
Downpayment$80,070
Loan Origination Fees$1,868
Depreciable Closing Costs$2,669
Other Closing Costs and Fixup$0
Initial Cash Invested$84,607
Cost per Square Foot$210
Monthly Rent per Square Foot$1.36
IncomeMonthlyAnnual
Gross Rent$1,725$20,700
Vacancy Losses($138)($1,656)
Operating Income$1,587$19,044
ExpensesMonthlyAnnual
Property Taxes($178)($2,135)
Insurance($100)($1,201)
Management Fees($108)($1,296)
Leasing/Advertising Fees$0$0
Association Fees($30)($360)
Maintenance($35)($414)
Other$0$0
Operating Expenses($451)($5,406)
Net PerformanceMonthlyAnnual
Net Operating Income$1,136$13,638
- Mortgage Payments($1,181)($14,171)
= Cash Flow($44)($533)
+ Principal Reduction$174$2,088
+ First-Year Appreciation$1,335$16,014
= Gross Equity Income$1,464$17,569
+ Tax Savings$180$2,163
= GEI w/Tax Savings$1,644$19,732
Mortgage InfoFirstSecond
Loan-to-Value Ratio70%0%
Loan Amount$186,830$0
Monthly Payment$1,180.89$0.00
Loan TypeAmortizing Fixed
Term30 Years
Interest Rate6.500%0.000%
Monthly PMI$0
Financial Indicators
Debt Coverage Ratio0.96
Annual Gross Rent Multiplier13
Monthly Gross Rent Multiplier155
Capitalization Rate5.1%
Cash on Cash Return-1%
Total Return on Investment21%
+ Tax Benefits: Deductions, Depreciation, 1031 Exchange, etc.
Assumptions
Real Estate Appreciation Rate6%
Vacancy Rate8%
Management Fee$108
Maintenance Percentage2%
Comments
Photos may be representative. Furniture not included.
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.